Quanto Futures and Options are cash settled Derivatives in which the underlying traded product is denominated in a foreign currency that is settled in another domestic currency at a fixed exchange rate. These products appeal to market participants seeking foreign commodity exposure without the corresponding risk of adverse exchange rate fluctuations. The JSE’s wide range of Quanto Futures and Options products reference energy products, metals and Soft Commodities.
Investors will typically use this product when they have a specific view of the price of the commodity and will either buy or sell the commodity based on this view. Commodity investors and speculators hoping to make a profit on price movements in the futures or options contract price based on the foreign referenced commodity would do well to consider this product since pricing is not influenced by any exchange rate fluctuations.
To access this product, an investor needs to register as a client with an authorised member firm, deposit the required initial margin and sell or buy according to their market views.
Copper Futures and Options
Gold Futures and Options
Platinum Futures and Options
Silver Futures and Options